Business PlanBusiness Plan

By: Joel Newsom Owner/ C.E.O.

Executive Summary:

• M.M.A. One Stop Hit Shop will be in the business of providing martial arts apparel and equipment to athletes of all ages, sizes and experience levels.

• To start off the company will be web based. With M.M.A.(mixed martial arts) on the rise, there is a number of organizations, teams and individuals in the area.

• The base of operations would be my residence. We do plan to expand and possibly open a store front in the area. Financing through lending association or federal grants is in need in the form of a start up loan. This will be used to buy products from manufactures and also pay for supplies.

Objectives:

• Brand recognition. I have talked to the manufactures and products can be made with their logos or M.M.A. One Stop Hit Shop logo. Customers can even custom order their names or logos on products.

• Operate at a level where company is profiting after the first year!

• Growth and expansion within the first 3 years.• Work to achieve the growth rate of 3.6%

minimum and service 25,000 people/ year.

Mission Statement:

• M.M.A. One Stop Hit Shop will bring customer the quality products they demand at a price they can afford.

• We look to establish long term relationships with customers since mixed martial arts is growing exponentially world wide.

Company Summary:

• M.M.A. One Stop Hit Shop will provide customers with quality martial arts products. Not only that,but will give customers tools they need to help them achieve their physical and mental goals.

Start- up Requirments:

1. get logo trademarked - $400 for online store service and logo marked goods.2. purchase of domain name "MMAOneStopHitShop.com" for online store, also

purchase and maintance fee of online store @ ebay.com - $1003. Initial product inventory purchase:• (10) Gracie Barra Jiu Jitsu Gis- $ 520• (10) BJJ Belts- $40• (15) Custom Head Gear and (15)Focus Mitts- $780• (50) Custom Amateur MMA Competition gloves- $800• (20) Custom logo fight shirts- $400• (25) Custom Boxing Hand Wraps- $45• (100) Custom Mini Keychain Advertising- $80• (100) Custom Mouth Guards with Case- $260• (10) Custom Shin Guards- $250• (20) Custom MMA Training Gloves- $360• (20) Custom MMA Fight Shorts- $350• (50) Custom Gym Bags- $600• (25) Cornerman Bag w/ Accessories- $8501. (25) Custom Boxing Glove- $610

Start Up Requirments: (continued)

1.Office Supplies- $ 10002.Advertisment- $ 500

This brings my grand total of funding required to: $10,000

Products:

1.Gracie Barra Jiu Jitsu Gis2.Head Gear3.Mouth Guard w/ Case4.T Shirt 5. M.M.A. Style Shorts

Products: (continued)

1.M.M.A. Amateur Competition Glove

2.Training Gloves3.Boxing Gloves4.Shin Guards

Products: (continued)

1.Hand Wraps 2.Focus Mitts3.BJJ Belts4.Gym Bag

Products: (continued)

1.Cornermans Bag w/ Accessories1.Logo Key Chains

Market Analysis Summary:

The Gennesee county area host several Mixed Martial Events. There is at least one a month. I plan to target these events for my local sales. Not only those but dojos and gyms alike. Majority of my sales will be done over the internet. Cnet reports that the average person is online 13 hrs. per week. Through advertising on social media sites like facebook, twitter, youtube and myspace, I can reach a wide array of consumers. Facebook alone I have a base of 30,000,000 people that could see my add.

Competition And Buying Patterns:Locally there isn't very much competition at all. In fact there are only 10 martial arts stores in the

whole state of Michigan.

Ballard Enterprise245 Carey Street, Deerfield MI

Sporting Goods Stores and Bicycle Shops

David Gerrard(Le Costa De Armory) 44 Orford Court, Bay City MI

Sporting Goods Stores and Bicycle Shops

East West KarateHQ5330 Division Avenue S, Grand Rapids MI

Sporting Goods Stores and Bicycle Shops

Golden Dragon32048 Utica Road, Fraser MI

Competition And Buying Patterns: (continued)

Kim's Sports Martial Art Supply Inc406 E Liberty Street, Ann Arbor MI

Sporting Goods Stores and Bicycle Shops

Kwon Inc(Kwon Martial Arts) 3420 Broadmoor Avenue SE # 1, Grand Rapids MI

Sporting Goods Stores and Bicycle Shops

Lightning Kicks Martial Arts826 Mills Street, Kalamazoo MI

Sporting Goods Stores and Bicycle Shops

Martial Art Supplies7329 N Lilley Road, Canton MI

Sporting Goods Stores and Bicycle Shops

Competitions And Buying Patterns: (continued)So who is buying mixed martial arts gear? Actually

the target consumers are males in their teens to early 40's. With exciting youthful sponsors such as: THQ, Microsoft, Metro Pcs and Burger King the UFC draws a younger crowd. Then again they also have the more adult oriented sponsors like: Bud Light, Harley Davidson, and Safe Auto. Xyience and Tapout fit into both catagories.

With the UFC paving the way people of all ages, races, sexes and sizes are hopping on the mixed martial arts train.

Strategy And Implementation:

1.Distribution through web store http://freewebstore.org/Mma-One-Stop-Hit-Shop soon to be mmaonestophitshop.com

2.Distribution through my EBay store3.Vendor at local fights4.Raffle prize at local fights5. local gyms and schools 6.Advertise on Facebook,Youtube,Twitter,Myspace,

Ecommerce, Craigslist, Google etc.7.Brochures, Business Cards, and Placemat Ads.

Competitive Edge:

• MMA One Stop Hit Shop has the competitive edge because we can sell our quality products cheaper than already established fight wear names, i.e. ; Tapout, Combat Sports, Pretorian, Kawaii, MMA Elite. With the state of todays economy people will appreciate quality products at a lower price.

Sales Forcast:

Our primary focus will be on the Jiu Jitsu gi's. They are in the most demand right now and have the greatest markup value. We will also be selling an array of martial arts equipment. I expect strong growth in the first year due to intense high volume marketing and exposure. I am expecting sales to grow 2% each month for the first year then maintain an industrial average of 11.5% per year.

Sales Forcast: ( continued)

Sales Forcast: (continued)

Sales Forcast: (continued)

Financial Plan:

MMA One Stop Hit Shop will regulary monitor all financial statements because they have a direct correlation with the health of the business. I have forcasted steady growth into the future with a moderate steady growth rate. Profits will be reinvested back into growth and development of MMA One Stop Hit Shop.

Important Assumptions:

• Growth rate of 2% a month for the first year• Steady growth rates throughout the year• Gracie Barra Gis selling 10 the first week at

$120/ set.• Selling 10 bundle packages my first month at

$200/ set minimum, there will be larger sets aswell.

• I will sell a minimum of 15 individual items other than key items listed above per month.

Yes I have projected this as the outcome but this is no guarantee.

Break Even Report:

Monthly YearlyProducts $1,620.00 $19,428.00Supplies $100.00 $1,200.00Websites $80.00 $960.00Marketing $500.00 $7,000.00Promotions $880.00 $10,560.00Accounting $100.00 $12,000.00Total: $3,280.00 $39,360.00

Pro Forma Profit - Loss Month 1 Month 2 Month 3 Month 4

Sales $7,100.00 $7,242.00 $7,386.00 $7,533.00

Direct Cost of Sales $1,620.00 $1,620.00 $1,620.00 $1,620.00

Gross Margin $5,480.00 $5,622.00 $5,766.00 $5,913.00

Gross Margin % 77.00% 77.00% 78.00% 78.00%

Expenses

Marketing $500.00 $500.00 $500.00 $500.00

Office supplies $100.00 $100.00 $100.00 $100.00

Website $80.00 $80.00 $80.00 $80.00

Promotions $500.00 $500.00 $500.00 $500.00

Accounting $100.00 $100.00 $100.00 $100.00

Total Operating Expense $1,280.00 $1,280.00 $1,280.00 $1,280.00

Profit before taxes $4,200.00 $4,342.00 $4,486.00 $4,633.00

Taxes $252.00 $260.52 $269.16 $277.00

Net Profit $3,948.00 $4,081.48 $4,216.84 $4,356.00

Net Profit Sales % 56.00% 56.00% 57.00% 58%

Sources For Research:

• http://smallbusiness.costhelper.com/bookkeepers.html

• http://www.uspto.gov/trademarks/index.jsp• manta.com• alibaba.com (product price quotes from

manufacturers).• http://pages.ebay.com/storefronts/start.html• http://www.123-reg.co.uk/order?

search=search&domain=mmaonestophitshop.com&ajax_enabled=true

Appendix:

• Slide 1: Cover page• Slide 2: Executive Summary• Slide 3:Objectives• Slide 4: Mission Statement• Slide 5: Company Summary • Slides 6 & 7: Start Up Requirements• Slide 8,9,10 & 11: Products• Slide 12: Market Analysis Summary• Slide 13, 14, & 15: Competition & Buying Pattern• Slide 16: Strategy and Implementation• Slide 17: Competitive Edge

Appendix: (continued)

• Slides 18, 19, 20 & 21:Sales Forcast• Slide 22: Financial Plan• Slide 23: Important Assumptions• Slide 24: Break Even Report• Slide 25: Pro Forma Profit - Loss Chart• Slide 26: Sources for Research• Slides 27 & 28: Appendix• Slide 29: In Closing

In Closing:

Thank you for your time and consideration. MMA One Stop Hit ShopJoel Newsom 5261 E. Bristol Rd. Burton, Mi. 48519 (810) 742- 0392email: mmaonestophitshop@gmail.com